IRS Releases New Rule On Reclassifying Independent Contractors

The Internal Revenue Service (IRS) has a new Voluntary Classification Settlement Program that allows an employer to reclassify independent contractors as employees if those workers previously were misclassified. According to the IRS, there will be no interest charges or penalties, and, if reported, the IRS will not audit an employer on payroll taxes related to reclassified workers for previous years. More details, including frequently asked questions, are available by clicking here.